Paramadina University, Jakarta, once again organized the inspirational Meet The Leaders forum. This forum has consistently become an open dialog space between students, the public, and important figures from various strategic sectors.
In this latest edition, July 26, 2025, the forum raised the theme "Djarum: A Story of Strategic Succession" with Victor Hartono, MBA, the 9th generation of the Hartono Group family, as the keynote speaker.
The forum was guided by Wijayanto Samirin, MPP, economist of Paramadina University as well as the host of the program, who directed the discussion to various important aspects of family business succession and business resilience across generations. The event was held at Benny Subianto Auditorium, Paramadina University Kuningan Campus, Saturday (26/7/2025).
In his speech, the Rector of Paramadina University, Prof. Didik J. Rachbini, Ph.D., emphasized that the real stories of cross-generational businessmen like Victor Hartono are important to share with the younger generation. "Presenting a figure like Victor Hartono is a strategic step to share the real story of cross-generation business sustainability," said Prof. Didik.
He also stated that understanding succession in family businesses is a valuable lesson for future leaders.
Victor Hartono began his presentation with a statement that became the common thread of his extended family's journey: "The industry we work in today will not necessarily be able to provide a living in the future. This is not just a theory, but a bitter experience that has been experienced directly by our family for several generations," he said straightforwardly.
Victor recounts that the Djarum family business was originally not the cigarette industry, but the peanut oil trade during the colonial era. However, with the influx of more productive African palm oil, peanut oil was slowly eliminated from the market.
The efficiency of oil palm harvesting, which can reach 12 times a year, is the main reason for this shift. From there, the Hartono family realized that no business is immune to technological disruption and market dynamics.
Victor then took the audience through the history of his extended family, starting with the 7th generation, namely his grandfather, Oei Wie Gwan, who came from Fuzhou, China, and started a mercon factory under the Cap Leo brand. Unfortunately, the business collapsed many times.
In 1939, the mercon factory exploded and led to bankruptcy. The business was rebuilt, but two years later it was robbed and burned down. Finally, in 1942, the Japanese occupation put the business out of business due to a total ban on the production of explosives.
"The big lesson is that political and international conditions can dissolve all assumptions of business sustainability," Victor explains. He also mentions that until now, legal mercon factories in Indonesia are almost non-existent due to regulations and the high risks involved.
Family challenges can threaten business
In addition to external challenges, Victor said that challenges from within the family are often factors that threaten businesses. He mentioned the internal conflicts that arise due to stagnant cash flow, different ambitions between family members, and unclear leadership.
He cited issues such as unworkable meritocracy, unfair dividend distribution, and failed generational transitions as "time bombs" in family businesses.
From this long and bitter experience, Victor shares his views on family business sustainability strategies. He emphasized the importance of clarity in the leadership structure - there should only be one main leader to maintain the direction of the business and minimize conflict.
"The big lesson is that political and international conditions can throw off all assumptions of business sustainability," Victor explains.
He also encouraged a clear division of business units between family members, the importance of maintaining internal family cohesiveness, and openness to selling part of the ownership to financially and strategically stronger business partners. "This is not a defeat, but a strategy to strengthen long-term competitiveness," he said.
In closing, Victor expressed his hopes regarding regeneration in the family business. "If possible, one, two, up to four people should be born from the family who really become conglomerates. Not just heirs to a name, but true business people who can read the times," he said.
The forum not only provided insights into cross-generational business strategies, but also served as an important mirror for students and the younger generation on the meaning of adaptability, resilience, and visionary leadership in the ever-changing business world.
Source: Paramadina University
